Bangladeshi garments accessories and packaging makers have made massive investments of around Tk. 1,000 crore to push up export and meet the demands of the apparel sector. This investment is driven by the accessibility of the workforce at reasonable wages, duty-free market access in major export destination and preferential location in the heart of the Asia-Pacific region.
Bangladesh is the second largest exporter of apparel products in the world after China, and offers a huge investment opportunity. The sector, last year, attracted investments worth Tk. 1,200-1,500 crore with more projects waiting in the pipeline. The government’s decision to reduce corporate tax rate from 15 per cent to 12 per cent in the RMG sector has also spurred investments in the sector.
Since demand for accessories is growing at a faster rate in Bangladesh, around 100 new factories started operations this year. Presently, around 1,200 factories produce accessories in the country. The accessories produced include woven labels, leather badges, stone and metal motifs, rubber patches, gum tapes, satin and cotton ribbon hangers, price tags, buttons and zippers.
These accessories contribute to $7.10 billion worth of exports in the country. Of this, $1.42 billion are directly exported to the Middle-East, South Africa, Sri Lanka, Malaysia, Europe, Vietnam, Cambodia, and Laos.